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Treasurer Fitch Urges MS Delegation to Support College Savings

Posted On:
2/24/2015

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​Mississippi State
Treasurer Lynn Fitch urges the Mississippi members of the U.S. House of
Representatives to support H.R. 529, the Savings Enhancement for Education in
College Act. The measure is expected for a vote early this week.H.R. 529 would strengthen Mississippi’s 529
college savings plans by enhancing the features of the tax-advantaged accounts.

“This
legislation supports Mississippi families in their efforts to save for their
children’s college education by making computers an eligible 529 plan expense,
allowing the redeposit of funds without negative tax implications in certain
circumstances, and updating outdated accounting rules,” stated Treasurer Fitch.
“I am asking our delegation to ensure that Mississippi families have the
support they need to prepare for their children’s future.”

This year
student debt reached an all-time high of $1.3 Trillion for the country, with
the 2014 graduating class finishing college with an average of $30,000 in
loans. “Families need to do what they can to plan for the cost of college, so their
children do not enter the post-graduate world with a mountain of debt.We need to strengthen our college savings
plans to help them,” added Treasurer Fitch. “Twelve Million Americans have
approximately $250 Billion saved in 529 plans. In December of 2014, Mississippi
had the highest contribution rate in the Mississippi Affordable College Savings
(MACS) plan in the past three years. The goal of 529 plans is to reverse the
trend and to someday out-pace student loan debt. This legislation would be a
step in the right direction by offering Mississippi families even more
incentives to save.”

Making common
sense changes to 529 plans influence the way families manage their finances.
“We need to look at the example we’re setting for our children and future
generations of our state,” said Treasurer Fitch. “By promoting conservative financial
management, we can change the financial culture in Mississippi, which will in
turn improve our economy.”